But AT&T isn’t likely to get in much trouble. The wheels of justice at the Federal Communications Commission, which sent the letter, grind slowly. And advisors for the incoming Trump administration have already called for repealing the net neutrality rules, a move also favored by Republicans in Congress.

The companies most likely to be in trouble are AT&T’s competitors in the Internet video market. They can’t offer their customers the same deal DirecTV now subscribers will get without paying through the nose.

AT&T formally unveiled DirecTV Now at a media event in New York on Monday. The service offers over 100 channels of typical cable fare at a starting promotional price of just $35 a month. But the price goes up to $60 when the promotion ends, and there are a number of limitations on the service in the early going.

The controversy stems from AT&T’s decision that customers of its wireless service who sign up for DirecTV Now will be allowed to watch as much video on their phones as they’d like without counting against their monthly data allowances. AT&T t wireless customers who use competing services like Sony’s sne Vue or Dish Network’s dish Sling TV, don’t get the same benefit. Every bit of their online video viewing counts against their data caps.

None of AT&T’s three big content partners for DirecTV Now have made significant pushes into online TV services on their own. Comcast’s cmcsa NBCUniversal, Disney’s dis ABC and Twenty-First Century Fox’s fox Fox have preferred instead to partner with AT&T and others. The other major broadcaster, CBS, however, is an exception. CBS cbs does have its own Internet TV service, called CBS All Access, and it has not yet signed on with DirecTV Now. CBS declined to comment.

By doing so, the carriers benefit in two ways. Current wireless customers are more likely to use the carriers’ own video services over competitors. Plus, people who sign up for the video services may be more likely to pick the carriers for their wireless service. The FCC, which adopted the net neutrality rules last year to prevent systematic discrimination against any online content, hadn’t objected until the letter it sent to AT&T this month.

AT&T says zero rating is a benefit to consumers since it allows them to watch more video. And the practice isn’t discriminatory, the company argues, because competing services can get the same treatment if they agree to cover the cost of their customers’ data usage, as AT&T says it does for DirecTV Now. In a reply to the FCC last week, AT&T said it had “faithfully adhered” to the rules and maintained that the FCC’s interpretation was a “radical departure from established law.”

Fortune reached out to AT&T for comment on Tuesday and will update this story if a reply is received. The FCC is still reviewing AT&T’s response to its letter and had no further comment, a spokeswoman said on Tuesday.

The FCC and some outside observers have argued that the way AT&T is using zero rating is discriminatory. There is no cash cost to AT&T from zero rating its customers’ video usage, while competitors would have to pony up big bucks to get the same treatment, they say. The cost of matching the zero rating benefit alone could “render infeasible” other services’ attempts to match DirecTV Now’s $35 price point, the FCC noted in its letter.

The FCC, however, is about to undergo a braintrust transplant-one that is likely to help AT&T in this case. The letter challenging zero rating was written under the administration of FCC chairman Tom Wheeler, who was appointed by President Barack Obama, who was also a strong proponent of the net neutrality rules.

But within months, President-elect Donald Trump will appoint his own chairman of the agency. And in addition to his general hostility to government regulation, he has named two ardent opponents of the net neutrality rules to oversee his FCC transition team. Either of the transition leaders, Jeff Eisenach or Mark Jamison, could end up as FCC chairman.

And that would leave AT&T’s DirecTV Now with its big advantage--and competitors at a big disadvantage.

]]>http://fortune.com/2016/11/29/att-net-neutrality-directv-now/feed/0AT&T Celebrates the Launch of DIRECTV NOWampressmanAlmost a Million People Cut the Pay TV Cord in the Last Three Monthshttp://fortune.com/2016/08/31/pay-tv-cord-cutting/
http://fortune.com/2016/08/31/pay-tv-cord-cutting/#respondWed, 31 Aug 2016 16:09:58 +0000http://fortune.com/?p=1783288]]>Debate continues over the size and growth rate of the cord-cutting phenomenon, which has seen large numbers of TV watchers cancel their cable and satellite subscriptions in favor of digital streaming services. But there is no question it is happening.

According to recent estimates from research firm SNL Kagan, more than 800,000 people got rid of their pay-TV accounts in the last quarter. The picture looks even worse when compared with the same quarter a year earlier. Since then, almost 1.4 million people have cut the cord.

“It is a bit of an acceleration and the biggest quarterly loss that we've seen,” SNL Kagan analyst Ian Olgeirson told the Los Angeles Times. “We are seeing a gradual increase in the decline rate.”

The numbers from SNL Kagan are even higher than an earlier estimate from research firm Moffett Nathanson, which said that the pay TV marketplace as a whole lost about 757,000 subscribers in the second quarter.

Just a few weeks ago, Nielsen reported that according to its research, Disney-owned ESPN had lost another 2.2 million subscribers since February. That means since 2011, the network has lost more than 11 million subscribers, or more than 10% of its total customer base.

Telecom providers have been particularly badly hurt by cord cutting: In the latest quarter, SNL Kagan says close to 500,000 people got rid of their telco TV service. The vast majority of that decline came from AT&T’s U-verse service, which lost almost 400,000.

Cable companies, by contrast, have seen smaller declines in their user base--primarily because they have been signing up customers for their high-speed Internet services, and many choose to take a cable package as part of that deal as they get a discount if they sign up for both.

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Dish Network dishreported earlier this year that it lost 281,000 customers in the second quarter of its fiscal year. That total includes subscribers to the company’s growing Sling TV service, which suggests the actual losses for its satellite TV business were substantially higher.

Interestingly, Sling TV is now marketing itself as a cord-cutting solution, which may help it acquire new subscribers but could irritate partners like Disney dis and NBCUniversal cmcsa.

Part of what is complicating the cord-cutting picture, MoffettNathanson founder Craig Moffett said in his firm’s recent report on the phenomenon, is the rise of so-called “skinny bundles,” which include a smaller number of channels and networks to appeal to cost-conscious users, but often don’t include premium brands like ESPN.

But in either case, it means lower numbers for pay-TV providers, and that trend is not going away.

]]>http://fortune.com/2016/08/31/pay-tv-cord-cutting/feed/0Multiple television/computer screens stretching toMathewYouTube’s Pay Video Service Is Already Storming Past Other New Offeringshttp://fortune.com/2016/08/31/youtube-red-streaming-video/
http://fortune.com/2016/08/31/youtube-red-streaming-video/#respondWed, 31 Aug 2016 13:56:56 +0000http://fortune.com/?p=1783088]]>Google’s YouTube Red video subscription offering is already attracting 3% of viewers in the pay TV market ahead of other new services from CBS, Dish Network, and Sony, according to a recent survey.

CBS’s cbs All Access attracted 1.7% of the market in the second quarter--the same share it had a year earlier--according to a survey of over 3,100 people by research firm Digitalsmiths. The survey was reported earlier by the web site Fiercecable.

Dish Network’s dish Sling TV captured 1.5% of the market, up slightly from 1.2% a year earlier. Sony’s sne Playstation Vue service declined to 1.4% of the market from 1.7% a year earlier.

YouTube Red, the new $10-per-month offering from Alphabet’s Google, wasn’t on the market in the second quarter of 2015. The other three services carry mostly traditional cable channel fare versus the short YouTube videos available on Red.

Still, all of the newer services trailed far behind the three giants of video streaming.

Netflix captured almost 54% of viewers, up from 49% a year earlier. In second, Amazon’s Prime streaming service had 24% of the market, up from 23% last year. Hulu, owned by some of the major Hollywood studios, was unchanged on the year with a 12% market share. Time Warner’s twx HBO Now service was fourth, also with an unchanged market share of almost 6%.

Survey respondents were asked to list all video services they used. In total, 64% of viewers subscribed to at least one pay video streaming service in the second quarter, Digitalsmiths found. That was up from 58% a year ago and 51% two years ago.

The video streaming market has become intensely competitive as millennials and some older viewers increasingly turn away from traditional cable TV subscriptions, which they find too expensive or inconvenient. The cable industry has tried to fight back by giving its subscribers access to more shows on mobile devices via so-called over-the-top video apps. Meanwhile, the big three streaming players--Netflix, Amazonamzn, and Hulu--are spending more than ever to acquire shows and movies.

With its continued market share growth, Netflix nflx did not appear to suffer much from its price hike to $10 per month--up from $8--for its most popular level of service. The increase finally started hitting existing customers who had been grandfathered to pay the old price until this year.

YouTube hasn’t disclosed details of how many subscribers the Red service has attracted. Earlier this month, Google googl said it was adding its Youtube app for kids to Red, which lets subscribers avoid seeing ads and download videos to their mobile devices for watching offline.

]]>http://fortune.com/2016/08/31/youtube-red-streaming-video/feed/0DSC_3170VibrantampressmanDish Network Has Good News for NFL Fans and Sling Subscribershttp://fortune.com/2016/08/04/nfl-dish-sling/
http://fortune.com/2016/08/04/nfl-dish-sling/#respondThu, 04 Aug 2016 19:23:05 +0000http://fortune.com/?p=1759234]]>The NFL’s TV channels are back on Dish Network, and now they’re available to Sling subscribers as well.

Dish dish announced Wednesday it had reached a deal with the league to put NFL Network and NFL RedZone back in its satellite TV lineup, ending a brief blackout that began in mid-June after the two parties disputed over distribution fees.

The NFL also reached an agreement with Twitter twtr in April to live stream select NFL games, according to Reuters. Twitter outbid Amazonamzn, Verizonvz, and Yahoo yhoo to close the deal before securing similar ones with the NBA and MLB as the social media site invests heavily in video streaming to remain competitive with Facebook fb.

Dish and other cable providers are facing intense deal negotiations with network programmers seeking price increases who are increasingly lured by the rising popularity of streaming services like Netflix nflx, Hulu, and Amazon Prime amzn. On Tuesday, Time Warnertwx said it paid $583 million for a 10% stake in Hulu.

Dish is still involved in a fee dispute with Tribune Media, which owns WGN and many other local broadcast affiliates.

Dish dish has restored NFL Network and NFL Redzone on its satellite-TV service, it said in a statement. Both channels will be added to its online video service Sling TV in time for NFL season, it said.

Details on the pricing of NFL Network and NFL RedZone on Sling TV will be disclosed shortly, Dish said.

The NFL channels, which went dark on Dish’s network in mid-June amid a disagreement over fees, now will be back before the new football season kicks off in September.

Cable and satellite TV distributors are increasingly negotiating hard with programmers, resisting demands for price increases to carry content at a time when viewers are being drawn to Netflix, Amazon Prime and other online services. Such contract standoffs have made blackouts commonplace in the television industry.

Dish is currently locked in a battle with Tribune Media Co over fees to carry Tribune-owned stations and cable network WGN America.

Dish’s shares closed up 4.3% at $51.32 on Wednesday.

]]>http://fortune.com/2016/08/03/nfl-dish-sling-tv-deal/feed/0Denver Broncos versus the Houston TexansjppullenHere’s Why Google and Apple Still Don’t Offer Streaming TV Serviceshttp://fortune.com/2016/05/06/google-apple-tv/
http://fortune.com/2016/05/06/google-apple-tv/#respondFri, 06 May 2016 19:07:39 +0000http://fortune.com/?p=1650568]]>All around us, the landscape of the TV market continues to buckle and heave as old players scramble to hold on and new entrants jockey for position. Cable companies maintain that cord cutting isn’t a big deal, but at the same time, they are busy launching their own Netflix-style streaming services. Now Hulu--jointly owned by Disney, 21st Century Fox, and Comcast--says it is going to offer a cable-style streaming service.

Given the massive marketplace that TV represents, especially from an advertising point of view, there are a couple of names that seem like they should be obvious players in this Game of Thrones: Namely, Google (or Alphabet) and Apple. But neither of them offers anything close to a cable-style streaming TV service yet, despite many attempts to build one.

You can get a sense of why that is by reading between the lines of a recent report from Bloomberg that YouTube is planning to launch an online TV service called Unplugged next year. This is apparently “one of YouTube’s biggest priorities,” and the site has had discussions with networks such as Fox, CBS, NBC, and Viacom about content deals.

Crucially, however, the story also adds that YouTube “has yet to secure any rights” to programming from any of the major TV companies for its new service.

The idea of YouTube offering a web version of cable TV is not a new one. Depending on how you measure these kinds of things, Google GOOG has been talking about or working on such an idea since at least 2012. It has had repeated discussions with the major TV networks and media companies, and it has failed to reach anything close to a deal.

Apple has been trying to put together a cable-style service for even longer than Google has. The first reports of discussions between the consumer electronics giant and various TV players started surfacing in 2009 when Disney and CBS were rumored to be talking with Apple about allowing their shows to be streamed through iTunes. Nothing ever came to pass.

Periodically, reports continue to surface about talks with media companies aimed at putting TV content on Apple TV, but nothing ever seems to come of them. At one point last year, Moonves was talking about Apple’s plans for a streaming service, and how CBS would likely be a part of it. Then, just as suddenly, he said there were no talks going on, and he didn’t know if there would be any in the future. So what changed?

No one is saying much about the details of what the two discussed, but this isn’t the first time Moonves has backed off an Apple TV deal — he did the same thing in 2011, after having discussions with Apple’s then-CEO Steve Jobs about streaming CBS content via the Apple TV. The CBS president said at the time that he nixed the arrangement because because he didn’t like the ad revenue split that Apple was proposing.

For both Google and Apple, the problem comes down to cost. Both want to offer a service equipped with a selection of different channels from different TV networks and providers, and they don’t want it to cost more than about $30 a month because otherwise not enough people will be tempted to sign up. Dish Network already offers a similar kind of “skinny bundle” of channels via its SlingTV service for $20 a month, and Sony’s PlayStation Vue is $30.

The major TV networks like CBS and NBC, however, want Google and Apple to pay up for their programming. In many cases, in fact, they actually want more for their shows than they are getting from existing distributors such as Comcast and AT&T. Why? Mostly because they are afraid that the value of their content is decreasing in an age where anything can be streamed via multiple services, and getting giants like Google and Apple to pay more for streaming rights is one way of setting a firm benchmark on their value.

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In a sense, TV companies are torn between two competing goals: They know that the traditional cable market is being disrupted, and they know that consumers want more choice, which is why they are working with Hulu and SlingTV and others. But if they provide their content to Google and Apple and don’t find a way to drive a hard bargain, what’s to stop those companies from becoming the new cable giants, and dictating unfavorable terms to the TV programmers?

On top of that, there’s the risk of blowback from existing cable companies and distributors if TV suppliers start getting too friendly with their potential digital competitors. TV players such as Viacom have already been through tense negotiations with distributors like Dish Network because their content is seen as being less valuable than it used to be. The more competitors there are pushing streaming services, the more downward pressure there will be on prices for that content.

That’s the main reason why you keep seeing reports about Google and Apple working on cable-style services that never seem to appear. (Amazon is in much the same boat.) The suppliers of TV programming are tempted by the reach they could get and the ad revenue they could share in, but they are also afraid of transferring too much power to some already massive Internet companies.

Like other traditional media companies, they know the future is coming. They just don’t quite know how to get there without jeopardizing what they already have. So the Game of Thrones continues.

Dish DISH will now repair iPhones for consumers across the United States. Available in all 50 states, the service will dispatch Dish’s “fleet of professional technicians” to repair cracked screens and replace an iPhone’s ailing battery.

The program, known as “Smart Phone Repair,” is available starting on Tuesday. However, it might be somewhat surprising that a company that makes its money by providing pay TV service nationwide would want to fix iPhones. What’s more, Dish says it’ll deploy its technicians to wherever customers desire for a flat fee of $35.

“Dish offers appointments seven days a week including same-day and next-day availability, and guarantees all repair work with a 60-day warranty,” the company said in a statement.

Fixing a cracked iPhone screen or replacing its battery can be a substantial pain for iPhone owners--especially if they’re out of warranty with Apple AAPL. In many cases, those iPhone owners will either pay a fee to Apple to fix their devices or use a third-party repair company in hopes of saving some cash. The quality on those third-party replacements, however, vary.

For its part, Dish says that it will use only “high-quality replacement parts” that it sources from “respected” third parties.

Still, jumping from television to iPhone repairs seems like a big leap for Dish. However, a company spokeswoman told Fortune that Dish might actually be “well-positioned” to fix iPhones thanks to its “mobile network of professional technicians.”

The Dish spokeswoman added that the company has been expanding to include more than its services repairs.

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“Dish has a nationwide network of trusted technicians who deliver a consistent, exceptional experience for our customers as they visit 20,000 homes daily,” the spokeswoman said. Indeed, over the last five years, Dish has offered a wide array of in-home services beyond getting your television service up and running through its Smart Home Services program. That service offers customers the option to set up and mount televisions, install surround sound systems, and get an in-home wireless network installed.

“The launch of smartphone repair is the next step in this progression,” the spokeswoman says.

Dish’s Smart Phone Repair page asks users to input the type of device they have and then lists the price for service. All of the fees include the $35 travel charge. Fixing an iPhone 6’s screen, for instance, will cost $155. An iPhone 6 Plus display replacement will cost $185. The service is available to both Dish customers as well as those who don’t use its television service.

Dish says it plans to expand its smartphone repairs to other devices in the future. For now, though, it’s all about the iPhone.

]]>http://fortune.com/2016/05/03/dish-network-fix-iphone/feed/0GettyImages-496014816dreisingerYour Smartphone Connection May Speed Up Soon Thanks to the TV Industryhttp://fortune.com/2016/04/29/smartphone-connection-speed-up/
http://fortune.com/2016/04/29/smartphone-connection-speed-up/#respondFri, 29 Apr 2016 19:40:20 +0000http://fortune.com/?p=1643051]]>The government’s upcoming spectrum auction is intended to sell off airwave rights assigned to television broadcasters that they no longer need. Later this year, the spare frequencies will be sold to mobile phone carriers, whose current spectrum rights are nearly overwhelmed in some major metro areas, slowing consumers smartphone connections to a crawl.

On Friday, the carriers got good news from the Federal Communications Commission, which is running the auction for bands in the desirable 600 MHz frequency. During the initial phase, TV broadcasters voluntarily decided to put up huge amounts of their rights, enough to create 10 new licenses of 10 MHz each on a near-nationwide basis, the FCC said. The TV broadcasters weren’t just motivated by good intentions--they stand to collect billions of dollars from the buyers in the next phase of the auction.

Some 104 entities have filed to bid for the rights, ranging from AT&T t, Verizon Communications vz, and T-Mobile tmus to several dozen individuals. Other names include Dish Network dish, Comcast cmcsa, and upstarts like the VC firm Social Capital.

“The wireless industry has said it needs additional spectrum to meet growing customer demand and usher in the age of 5G,” FCC chairman Tom Wheeler said in a statement. “The broadcasters have stepped up and done their part to fulfill that demand. I look forward to a robustly competitive auction and the vast economic and consumer benefits that await.”

]]>http://fortune.com/2016/04/29/smartphone-connection-speed-up/feed/0Cellular towerampressmanFCC and DOJ Try to Protect Streaming Services in Charter-Time Warner Dealhttp://fortune.com/2016/04/25/charter-time-warner-streaming/
http://fortune.com/2016/04/25/charter-time-warner-streaming/#respondMon, 25 Apr 2016 22:17:19 +0000http://fortune.com/?p=1636706]]>Ever since it was first floated a year ago, the idea of Charter Communications and Time Warner Cable--two giant Internet and cable TV providers--combining in an $78 billion merger sparked concern in a number of areas. Some of the most vocal criticism came from “over the top” streaming services like SlingTV, who were afraid the behemoth would squeeze them out or use its market size to penalize them.

The Federal Communications Commission and the Justice Department approved the merger in principle on Monday, along with a separate deal that will fold in the smaller cable provider Bright House Networks. But in doing so, they tried to impose conditions that are designed to help streaming services like SlingTV--which Dish Network launched last year--and Netflix NFLX.

Will these restrictions actually prevent the newly combined company from somehow penalizing smaller streaming players or alternative services? Not everyone is convinced. But the FCC seems to be trying to impose conditions that will make it difficult, according to comments made by chairman Tom Wheeler. An order is expected to be circulated for the commission to approve later this week.

The bottom line is that the merged company has to agree to an almost unprecedented seven-year package of restrictions on its corporate behavior. One specific restriction is that the new entity is forbidden from asking companies like Netflix to pay interconnection fees for what are called “peering agreements, “in other words, the right to distribute their content through the new Charter/Time Warner cable network.

Netflix was forced to pay exactly these kinds of fees to Comcast in 2014, after protracted negotiations with the cable provider over the streaming quality Netflix customers were getting via Comcast. Although the company said that it was just trying to recover its costs, the FCC later suggested that it was planning to investigate whether peering charges were a breach of net neutrality rules.

So the new Charter/Time Warner won’t be allowed to charge those kinds of fees. And that agreement was enough protection that Netflix signed a letter giving its blessing to the merger, saying Charter’s no-fee peering policy was “a significant departure from the efforts of some ISPs to collect access tolls on the Internet.”

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In addition, the regulators have forbidden the cable giant from entering into agreements with program suppliers--for example, TV networks--that restrict those suppliers from providing their content to online or streaming services. In theory, this prevents Charter/Time Warner from cutting a deal with CBS to get access to some of its shows, and including a clause that prevents it from licensing those shows to Netflix.

Charter has also agreed that the new company won’t implement “data caps,” which are restrictions on the amount of data customers can use in a month, and hefty fees for going over the limit.

Do smaller streaming services like SlingTV believe that the current deal protects them? The company hasn’t commented yet, nor has its parent Dish Network. The Stop Mega Cable coalition--of which the Dish Network is a member--released a statement saying the agreement is “an important first step,” but fails to deal with some of the group’s criticisms.

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For example, the coalition said, “the conditions proposed in the draft order do not fully prevent Charter from using its dominant position in the marketplace to thwart competition from streaming services and to stifle competitors in underserved, rural communities.” The group believes that Charter/Time Warner should be forced to offer a stand-alone broadband service for those who just want to watch Netflix and other streaming services.

]]>http://fortune.com/2016/04/25/charter-time-warner-streaming/feed/0#F5002015 Charter CommunicationsMathewViacom and Dish Network Agree to Renew Contracthttp://fortune.com/2016/04/21/viacom-dish-contract/
http://fortune.com/2016/04/21/viacom-dish-contract/#respondThu, 21 Apr 2016 15:41:39 +0000http://fortune.com/?p=1632470]]>Viacom said on Thursday reached an agreement with Dish Network, averting a blackout of its programs on the satellite TV network.

News of the accord helped send Viacom’s shares up over 9.7% in late morning trade, while Dish’s stock firmed 0.6%.

The companies have been in discussions for several months over whether Dish would continue to carry Viacom’s 18 channels and at what price. A blackout would have blocked Dish subscribers’ access to Viacom shows such as Broad City on Comedy Central and SpongeBob SquarePants on Nickelodeon.

For Viacom, which has been struggling to turn around its waning television ratings, the agreement with Dish shows that distributors still view the company’s networks as valuable to viewers.

While Viacom could have pulled its programming from Dish networks when the agreement expired at the start of Thursday, it did not.

Viacom’s stock was up over 9.7% in late morning trading, while Dish’s stock firmed 0.6%.

A spokesperson for Viacom declined to comment Thursday. Postings on social media indicated that a threatened blackout of Viacom’s programming for the satellite TV provider’s 14 million subscribers had not occurred.

Viacom’s networks are also still listed as options for new customers, according to Dish’s website.

The companies have been in discussions for several months over whether Dish would continue to carry Viacom’s 18 channels and at what price.

A blackout would block Dish subscribers’ access to Viacom shows such as Broad City on Comedy Central and SpongeBob SquarePants on Nickelodeon.

A spokesperson for Dish was not immediately available for comment.

]]>http://fortune.com/2016/04/21/viacom-dish-deadline-passes/feed/0GettyImages-496014816sgronemusDish vs. Viacom Fight Is All About the Shifting Balance of Power in TVhttp://fortune.com/2016/04/20/dish-vs-viacom/
http://fortune.com/2016/04/20/dish-vs-viacom/#respondWed, 20 Apr 2016 17:57:56 +0000http://fortune.com/?p=1631048]]>You can tell how badly things are going in a disrupted market when the various players start attacking each other, trying to win even a small advantage as the landscape around them continues to heave and crack. And that’s exactly what we see happening today in the conventional TV business between Dish Network and Viacom.

The tensions between the satellite-TV provider and the entertainment conglomerate have actually been ramping up for some time, but they only recently spilled over into public view, with Viacom warning viewers via a dedicated website that channels like Nickelodeon, Comedy Central and MTV could go dark for Dish subscribers as soon as Wednesday night.

Viacom is trying to get consumers to lobby Dish to continue carrying its content, but Dish CEO Charlie Ergen seems adamant that he wants a much better deal than the one Viacom is currently offering. During the company’s earnings conference call on Wednesday, he said that there was still some room for an agreement, but that if a blackout of Viacom channels does take place, it “could be permanent.”

Why is all of this happening? In many ways, it’s a classic supplier-distributor disagreement, in which Viacom and Dish are re-negotiating the terms of their relationship. Viacom VIAB wants the satellite company to pay more for the right to carry its channels, and Dish is balking at the price. But the fight is also a microcosm of what’s happening in the conventional TV business as a whole, and the struggle to cling to whatever shreds of power remain.

In the past, cable and satellite companies relied heavily on a favorable relationship with suppliers of content like Viacom, because without access to those channels, they wouldn’t be able to attract new subscribers or keep existing ones. At one time, MTV and Comedy Central were among the main reasons people signed up for networks like Dish.

Over the past few years, however, the power that this gave companies like Viacom has dissipated, thanks to the rise of streaming services such as Netflix NFLX and Hulu and other alternative sources of entertainment. Some “cord cutters” are getting rid of cable altogether, and younger millennial consumers aren’t even signing up for those services when they move into their own homes.

For Viacom, this means the company is in a significantly less dominant position when it comes to negotiating a new contract with a distributor like Dish VIAB. The existing deal between the two was signed seven years ago, before Netflix even existed, and has been extended through a series of short-term agreements since January.

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When the Dish Network looks at Viacom, all it sees is a company whose channels aren’t as popular as they used to be, but that is still asking Dish to pay higher rates because the original contract was signed so long ago. In a statement, Dish said Viacom “is asking hundreds of millions of dollars in increases, despite the changing landscape that includes drastically reduced viewership of Viacom channels.”

Viacom, meanwhile, is arguing that since Dish is no longer as big a player as it used to be either, it should be grateful for whatever it can get. On its website, the company says the most recent rate it offered the network was “the same privileged rate the biggest distributors receive, even though DISH is less than half their size.”

There’s an added level of urgency to Viacom’s dispute with Dish, because if it agrees to accept lower rates from the satellite company, that could have a ripple effect on the deals it has with other satellite and cable distributors. In many cases, such contracts have “most favored nation” clauses, which force Viacom to offer its content at whatever the lowest rate is across all of its distribution agreements.

While the Dish Network’s reach and power have weakened over the past few years just as Viacom’s have, the satellite company is still in a somewhat stronger position than it used to be relative to the entertainment giant, because it knows that Viacom is already suffering from low viewership numbers, and that impacts its ad revenues.

The reality is that distributors like the Dish Network are arguably far more important to a company like Viacom than Viacom’s content is to them. If all of Viacom goes dark on the Dish Network, some subscribers might be upset, but likely not too upset--but for Viacom, a Dish black-out means it loses almost 14 million viewers overnight, which helps explain why its share price dropped almost 10% on Tuesday.

Dish hasn’t been shy about using its new muscle against other content providers either: It has taken recent disputes with both CBS cbs and 21st Century Fox fox to the point where both removed their channels from the network, but ultimately signed new agreements at what Dish felt were more favorable rates. Whether Viacom eventually folds its hand as well remains to be seen, but at this point Dish holds most of the cards.

The company lost 23,000 net pay-TV subscribers in the quarter, more than the analysts’ average estimate of a loss of 13,100 customers, according to market research firm FactSet StreetAccount.

The pay-TV operator had gained about 35,000 subscribers in the year-earlier period.

Dish, which is grappling with subscriber losses like other pay-TV providers, has been increasing rates and trying to lure young viewers to its cheaper $20-per-month Sling TV online streaming service.

Average revenue per user in the company’s pay-TV business rose to $87.94 from $85.73.

Net income attributable to Dish rose to 389 million, or 84 cents per share, for the first quarter ended March 31 from $351 million, or 76 cents per share, a year earlier.

Revenue rose to $3.79 billion from $3.72 billion last year.

Analysts on an average expected earnings of 62 cents per share and revenue of $3.8 billion, according to Thomson Reuters I/B/E/S.

]]>http://fortune.com/2016/04/20/dish-earnings/feed/0GettyImages-496014816djbentleyViacom Carriage Deal With Dish Set to Expire Wednesdayhttp://fortune.com/2016/04/19/viacom-dish-expire/
http://fortune.com/2016/04/19/viacom-dish-expire/#respondTue, 19 Apr 2016 17:11:31 +0000http://fortune.com/?p=1629302]]>Viacom’s carriage deal with Dish Network is scheduled to expire on Wednesday and no agreement is in sight, a Viacom spokesman told Reuters on Tuesday.

“We are extremely disappointed that DISH has not engaged in a serious way to reach an agreement,” the company said in a statement. Dish did not immediately return calls seeking comment.

The companies have been in talks for several months. On Tuesday, Viacom started running a crawl across the screen on all of its networks alerting Dish customers of a possible blackout.

Viacom shares were down 6.5% at $36.32 on Nasdaq, while Dish shares rose 1.5% to $47.19.

On March 7, Viacom Chief Executive Philippe Dauman said he expected to renew the contract with Dish Network in the next quarter.

Dauman said during Viacom’s last quarterly earnings call that the New York-based media company had entered into a short-term extension of its distribution agreement with Dish.

]]>http://fortune.com/2016/04/19/viacom-dish-expire/feed/094946589kingrachelSling TV Just Added An Important Feature to Its Streaming Servicehttp://fortune.com/2016/04/13/sling-tv-multistream-fox/
http://fortune.com/2016/04/13/sling-tv-multistream-fox/#respondWed, 13 Apr 2016 19:38:39 +0000http://fortune.com/?p=1623122]]>Sling TV wants you to replace your cable company with its over-the-top streaming service for smartphones, the web, and a number of television set-top boxes.

But its subscribers have had to deal with some inconveniences since the service debuted last year including the inability to watch different shows simultaneously on different devices. For example, you couldn’t watch a show on Sling TV in the living room while your son watched cartoons in his bedroom.

It was also impossible to split the cost of Sling TV by sharing a login with a sibling living across the country like Netflix nflx subscribers can. Sling TV limited subscribers to one stream at a time.

But on Wednesday, Sling TV announced that it would give in to consumer demand and become more flexible. The company said it would give users the ability to stream on up to three devices simultaneously. The new multi-stream plan, which costs $20 per month, includes over 30 channels. Sling TV considers the new plan a test that could be tweaked based on what it learns from customer feedback.

In addition to supporting multiple users, subscribers will also gain access to new channels including National Geographic, TruTV, and FX channel. Additionally, the new plan will include Fox Sports (regional and national sports) and local Fox broadcasts in a limited number of markets.

Those interested in the new plan will have to forfeit access to a handful of channels including ESPN, ESPN2, Disney, Freeform. Three add-on packages--sports, broadcast, and kids--can't be added to the new multi-stream plan.

If it sounds confusing, that's because it is. Thankfully, Sling TV has a chart (viewable here) to help decipher which channels are included in the various packages.

When it first premiered, Sling TV’s main appeal was its simplicity. Users paid $20 a month or a bit more to add a package or two. That was it. There were really no rules or convoluted hurdles you had to figure out to sign up for a package, unlike the complications that cable companies created. Yet as Sling TV adds multi-stream--most requested features to its service--customers are now faced with tough decisions.

For more on Sling TV watch our video.

Hopefully Sling TV, owned by Dish dish will be able to secure the proper streaming rights during its testing and get back to creating simple products. New and existing customers can sign up for the new plan by visiting Sling.com.

]]>http://fortune.com/2016/04/13/sling-tv-multistream-fox/feed/0Coolest gadgests CES 2015 — Sling TVcipriani15Nielsen Ups its Game With Access to Dish Set-Top Box Datahttp://fortune.com/2016/04/04/nielsen-dish/
http://fortune.com/2016/04/04/nielsen-dish/#respondMon, 04 Apr 2016 22:24:49 +0000http://fortune.com/?p=1612942]]>While TV companies are racing to adapt to upheaval in the television market, others are racing to try and accurately measure that change.

TV ratings company Nielsen has cut a deal with Dish Network that could help it solve that problem. The two companies announced on Monday an agreement to share anonymized viewing data from millions of Dish set-top box users so that it can be included in Nielsen’s TV ratings.

This might not seem like a big deal--especially when so many households are cutting the cord and going without cable altogether, in favor of streaming services like Netflix NFLX. But the arrangement does help Nielsen catch up with some of its competitors when it comes to measuring the size of the existing TV audience accurately.

Much of the local TV information that Nielsen includes in its reports still comes from families who keep paper diaries in which they record their viewing habits, a method that is notoriously unreliable. The company has been trying to modernize its methods because of criticism from its TV and advertising clients that it is behind the times.

The competitive pressure on Nielsen also got ratcheted up when two of its competitors in the measurement space--Rentrak and comScore--merged in a $770 million deal that was announced last year and closed in February. Rentrak already has deals with a number of cable and satellite companies like Dish to get data from their set-top boxes, and comScore specializes in online measurement.

Nielsen has spent much of the past year trying to convince its clients--which buy and sell billions of dollars worth of TV programs and advertising based on its numbers--that it is adapting to the new marketplace. The company recently introduced what it calls a “total audience metric,” which tracks viewing across video-on-demand services as well as many mobile and streaming services.

]]>http://fortune.com/2016/04/04/nielsen-dish/feed/0Vintage TV with Rabbit Ear AntennaMathewDish Sues NBCUniversal for Breach of Contracthttp://fortune.com/2016/03/16/dish-sues-nbc/
http://fortune.com/2016/03/16/dish-sues-nbc/#respondWed, 16 Mar 2016 12:47:24 +0000http://fortune.com/?p=1589153]]>Dish Network Corp said it is suing Comcast Corp’s NBCUniversal for breach of contract and expects to file for arbitration to block NBC from blacking out its channels such as CNBC and Bravo.

NBC and Dish are locking horns over the monthly price per subscriber the satellite operator would pay to carry NBC’s channels.

Dish said the complaint relates to current distribution renewal negotiations with NBCUniversal.

“NBC’s public statements against Dish over the past 24 hours are in violation of the contract between the two companies,” Dish said in a statement. “Today, Dish filed a breach of contract lawsuit against NBC to address those violations.”

NBC had launched a website, makedishdeliver.com, explaining how Dish subscribers could loose access to popular programs such as “The Real Housewives of Atlanta,” “The Magicians,” and “Squawk Box.”

The website urged Dish customers to push the carrier to keep NBCUniversal’s channels on the service.

NBC was not immediately available for comment.

This is the latest battle between distributors and media companies that have grown frequent and public. Dish was involved in a similar contract dispute with CBS in 2014.

Hopper 3, the company's latest digital video recorder (DVR), can record up to 16 shows simultaneously--for television addicts who just can’t watch enough. It’s also seven times faster than the previous model, due to an upgraded processor.

Hopper 3 is equipped with a two-terabyte hard drive, capable of storing 500 hours of high-definition video. Owners have the option of adding an external hard drive for more storage by connecting it through a USB 3.0 port.

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Users can set Hopper 3 to record shows or movies featuring a favorite actor, or every game for a sports team through a one time setup. For example, you can set Hopper 3 to record any TV show or movie with Michael Keaton in it through the device’s search settings.

In what Dish calls "Sports Bar Mode," Hopper 3 takes advantage of its 4K support by displaying four different channels in 1080p high-definition quality at the same time on a 4K television. Conversely, people who don’t own a 4K TV can still stream four channels simultaneously, albeit at a lower quality.

WATCH: T-Mobile, Dish Network in merger talks

When searching for shows on Dish's network, a new universal search feature will now search Netflix.

For those who are always on the move, Dish also announced HopperGo, a portable hard drive that connects to the Hopper 2 or Hopper 3. The device stores up to 100 hours of video.

The HopperGo can be a big help to travelers who want to be entertained by creating a small Wi-Fi network for up to five devices. Users who are connected to the device can stream content recorded at home from anywhere.

HopperGo will be available by the end of April for $99. Dish subscribers who have the Hopper 3 will pay an extra $15 for their monthly Dish subscriber bill after its premiere in early 2016.

Meanwhile, Dish's over-the-top service, Sling TV, is set to receive a redesign that makes it easier to find TV shows and movies. The service, which debuted at last year’s CES tech conference, is an online video streaming service for cord-cutters who want a limited selection of channels with a smaller monthly cable bill.

The base $20 package provides subscribers with 23 basic channels with add-on packages bringing sports, news, and family content for additional monthly fees. A total of 65 channels are currently available through various Sling TV subscriptions.

The service is currently available on set-top boxes such as Roku or Xbox One, as well as through mobile apps on iOS and Android.

The service, however, has always been difficult to navigate. Sling's redesign will feature content first, channels second. That means that popular shows and movies will be more prominently displayed on the homepage. It is also supposed to provide better suggestions of shows to watch based on your previous viewing habits. Subscribers will now have the ability to add programming packages directly within the app, instead of users being forced to visit the Sling website and add the package--eliminating one of the biggest complaints of current subscribers.

The updated look is expected to reach Roku devices in the first quarter, with more devices to follow there after.

This week, all eyes will be on the U.S. Labor Department’s Friday release of July employment numbers, as an especially strong showing for the country’s workforce could be seen as further proof that the Federal Reserve will raise interest rates in September. This week also brings a look at Disney’s most recent fiscal quarter, which should be buoyed by a few strong showings at the box-office. In addition to other major companies’ quarterly earnings, the Greek stock market starts trading again this week after a long layoff, and viewers will get their popcorn ready for the first Republican presidential debate, starring “The Donald.”

Here’s what you need to know to start your week.

1. July employment numbers

U.S. markets will be watching Friday’s monthly employment report closely after Federal Reserve chair Janet Yellen said she wants to see at least “some” improvement in the nation’s job growth before the central bank implements its long-anticipated interest rate hike, which could come as soon as next month. The U.S. Labor Department is expected to report on Friday that the economy added 222,000 new jobs in July, with the unemployment rate staying flat at 5.3%.

2. Fairy-tale earnings for Disney?

It’s been a blockbuster year for Walt Disney’s film division and the success of films like The Avengers: Age of Ultron should help boost third-quarter earnings for the “Mouse House” on Tuesday. Disney DIS is expected to beat Wall Street’s expectations for quarterly profits, with the summer season meaning higher revenue from the company’s parks and resorts unit. One area of concern is Disney’s cable channels business, which includes ESPN and has been hurt by the cord-cutting trend, much like the rest of the industry. And Disney isn’t the only media giant reporting quarterly earnings this week, with CBS Corp. CBS, 21st Century Fox FOX, and Discovery Communications DISCA also posting their latest results.

3. Earnings bonanza

The quarterly earnings bonanza continues this week, with the country’s second-largest drugstore company, CVS Health CVS reporting second-quarter numbers on Tuesday. CVS is expected to beat analysts’ expectations in terms of revenue, though the company’s sales growth has taken a hit since it halted sales of tobacco products last year. Health insurer Aetna AET also reports second-quarter results on Tuesday. The company recently announced an agreement to buy smaller rival Humana HUM in a $37 billion deal that represents the latest example of consolidation in the health insurance industry. Other companies reporting earnings this week include Dish Network DISH, Sprint S, cereal company Kellog K, Molson Coors Brewing TAP, and video game maker Activision Blizzard ATVI.

4. Greek stocks

Greece’s stock market reopens on Monday after being closed for more than a month. The Athens stock exchange will open with restrictions for domestic investors amid grueling negotiations between Greece’s leaders and its euro zone creditors over the troubled country’s proposed third bailout. Meanwhile, Ukraine is also looking to reach an agreement with its creditors this week. The Eastern European nation sees the end of this week as the “absolute last deadline” for a debt restructuring deal with bondholders led by the International Monetary Fund.

5. First Republican presidential debate

Here we go . . . The massive field of Republican presidential hopefuls gathers in Cleveland on Thursday with the idea being that they will face off in a few rounds earnest, thoughtful political discourse. Of course, many of the people tuning into the first Republican debate of the 2016 election cycle will be looking for something a bit more … lively. That’s to be expected with billionaire real estate mogul Donald Trump leading all contenders in the polls despite making headlines not only by taking frequent jabs at his rivals (like calling Senator Lindsey Graham “an idiot”) but also for disparaging comments he has made about Mexicans, the latter of which resulted in a number of corporate partners cutting ties with Trump.

--Reuters contributed to this report.

]]>http://fortune.com/2015/08/02/5things-july-employment-disney/feed/0People seeking jobs wait in a line thathuddlestontomHow the Colorado Supreme Court just confused every employer in America about marijuanahttp://fortune.com/2015/06/17/how-the-colorado-supreme-court-just-confused-every-employer-in-america-about-marijuana/
http://fortune.com/2015/06/17/how-the-colorado-supreme-court-just-confused-every-employer-in-america-about-marijuana/#respondWed, 17 Jun 2015 19:30:38 +0000http://fortune.com/?p=1180879]]>Earlier this week, the Colorado Supreme Court unanimously confirmed that although medical marijuana is legal, employers have the power to fire workers if they fail company-sponsored drug tests. Monday’s ruling is the latest in a series of decisions around the country denying job protection to state-sanctioned medical marijuana users who medicate off-duty. More than that, the decision is significant in that it sends a message to employers across other states wrangling with adopting laws to a nascent industry that is illegal under federal law.

Under federal law, marijuana is listed as a Schedule I drug--a drug with no acceptable medical use in treatment and a high potential for abuse. The U.S. Control Substance Act preempts any provision of state law that conflicts with the federal law. In the Colorado case, Brandon Coats used marijuana to help control his seizures associated with his quadriplegia. He had worked at Dish Network DISH for three years before he was fired for testing positive for marijuana, although he said he never medicated at work.

The Court said that because marijuana is illegal under federal law, it cannot be considered a "lawful activity" under Colorado's lawful activities statute. What's more, although many state medical marijuana laws create an affirmative defense against criminal prosecution, they do not give patients an affirmative right to use marijuana. These inconsistencies are a recipe for confusion among employers and employees.

Of the 23 states with medical marijuana statutes, eight address discrimination against employees who medicate. In some of the eight states, employers are prohibited from discriminating against employees because they are licensed to use medical marijuana in accordance with their state's law. Other states go further. Arizona prohibits employers from discriminating against a registered user who has failed a drug test for marijuana -- with two important exceptions. First, employers can act on the failed drug test if the employee used, possessed, or was under the influence of marijuana while at work. Second, they can act on the failed test if not doing so would jeopardize their status for federal funding or licensure.

The question now is what does the Colorado Supreme Court decision mean for employers in a state thinking about legalizing medical marijuana? Until a law is passed, marijuana, medical or otherwise, remains illegal. If the state passes a law giving some protection to employees who are licensed to use marijuana, employers would have to carefully understand the requirements of the law and review their internal policies to ensure compliance.

If a state passes a law that does not provide any employment protections for employees who medicate, employers are free to decide on their own on how to proceed. Large employers in states contemplating medical marijuana laws may be reluctant to wade into the difficult task of making exceptions to well-established management policies, even for top-performing employees, and therefore decide to follow the same strategy as Dish Network, which has 19,000 employees.

Smaller companies however, may be willing to be more flexible because they attract less public scrutiny. Also, due to the higher relative costs of replacing employees, smaller businesses might be more willing to implement management policies that account for off-duty use of medical marijuana while also factoring in whether it affects an employee's job performance or whether the business could reasonably accommodate the employee's use.

Whether efforts like these adequately and appropriately address the very real and sometimes conflicting concerns for employers about employee retention and drug use remains an open question. But one thing is certain: employers will have to decide what to do on a piecemeal basis and with little guidance from the law.

Kabrina Krebel Chang is a clinical associate professor of business law and ethics at the Questrom School of Business at Boston University.

]]>http://fortune.com/2015/06/17/how-the-colorado-supreme-court-just-confused-every-employer-in-america-about-marijuana/feed/0Los Angeles To Not Enforce Ban On Marijuana Dispensariesnt2192